Child leaves sole parents care suddenly
When a child stops being a dependent child of a sole parent because of a sudden change of circumstances beyond the control of the client, payment of the benefit may continue at the existing rate for 28 days following the date the child stopped being dependent.
This is to allow a period of transition for the client to adjust to their change in circumstances.
For example when a child suddenly goes into the care of Oranga Tamariki, payment may continue for 28 days from the date the child is no longer dependent on the client.
Extra help payments that can be continued for 28 days are:
- Accommodation Supplement
- Child Disability Allowance
- Disability Allowance
- Temporary Additional Support
- Winter Energy Payment
The exception is Childcare Assistance which must be stopped on the day after the client stopped caring for the dependent child.
During the 28 days continuation of payment, if the client has other changes of circumstances such as a change in income, the rate of main benefit and extra help will need to be reassessed using sole parent threshold rates.
Mandatory Reviews
Generally, clients getting Supported Living Payment must respond to the Mandatory Review before their review date or their payments will suspend.
If a child leaves a sole parent's care suddenly and the client qualifies for Supported Living Payment after the 28-day continuation period, they may be able to get an extension if they need more time to respond to the Mandatory Review.
If the client is unable to respond to the review (even if they had more time) based on their individual circumstances, they may qualify for an exemption.
Generally, when the Mandatory Review is only for Supported Living Payment and the benefit will stop at the end of the continuation period e.g. if they are over the income limit, and the review is due, an exemption will apply.
The client must contact MSD before their review date to discuss their situation if they need an extension or exemption.
Child turns 18
Generally, clients getting Supported Living Payment must respond to their notice before the child's 18th birthday or the child will be excluded from their payments.
If Supported Living Payment and any extra help is continuing at the existing rate for up to 28 days because a child has left a sole parent's care suddenly, and that child turns 18 during that period, the client is not required to respond to the notice and the child will not be excluded during the continuation of payment period.
However, if Supported Living Payment and any extra help is continuing at the existing rate for up to 28 days because a child has left a sole parent's care suddenly, and a different child in their care turns 18, the client must respond to the notice, or the 18-year-old will be excluded from their payments.
Family tax credit and Best Start tax credit
Family tax credit and Best Start tax credit should be stopped from the start of the pay period following the date the child left care (whether planned or suddenly) to avoid an overpayment for the client with Inland Revenue.
For more information see:
- Childcare Subsidy Child leaves care
- Best Start tax credit Child leaves care
- When an extension or exemption can be given
- Core policy Child turns 18
Legislation
- Other specified provisions not limited section 310M Social Security Act 2018
- Benefits payable to sole parent who stops caring for dependent child due to sudden and uncontrollable circumstances section 327 Social Security Act 2018
- Ending of subsidy regulation 19 Social Security (Support for Children in Hardship - Transitional Subsidy) Regulations 2016 (as saved by clause 67 schedule 1, Social Security Act 2018)
- exception (definition) section 103A Social Security Act 2018
